oil and gas

Naftogaz returns to Gazprom portion of transit payment

Naftogaz returns to Gazprom portion of transit payment
Photo: Reuters

Naftogaz Ukrainy has returned to Gazprom a portion of the payment for transit of Russian gas through Ukraine in September-October 2014, a Naftogaz spokesman told Interfax-Ukraine.

According to Naftogaz, the Ukrainian company calculated the cost of the transit services provided based on a price of $268.5 per 1,000 cubic meters of natural gas.

According to Ukraine's Ministry of Energy and the Coal Industry, Naftogaz gave Gazprom a bill totaling $64 million for natural gas transit in September and $88 million for transit in October. The bill for September was supposed to be paid by October 20, and for October - by November 20.

Gazprom's official representative Sergei Kupriyanov told Interfax earlier that Gazprom had paid Naftogaz Ukrainy for gas transit services on November 7. "We paid everything that we were supposed to pay," he said.

Kupriyanov added that the amount of payment was determined based on the price formula included in the contract: "We paid based on our calculations."

Naftogaz later confirmed that it had received payment.

Russia and Ukraine are disputing the gas price in arbitration court. The transit rate is pegged to the gas price, so in accepting a specific transit rate, it follows that a specific gas price is also being accepted. This fact will undoubtedly be used in court.

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